Wrong.
The idea that excess money in the society does not breed inflation is not tenable. Millionaire's excess is not excess at all. It is money in exchange for massive amount of goods, equity etc. It simply made from exchange for value. It is excess only in the nature of the individual's needs in question, which is irrelevant. It is impossible in any economy for the majority to be wealthy in excess of their needs without massive inflation.
Lest any think this exchange of ideas is irrelevant, it is directly applicable to Obama's let's tax the wealthy idea. How? Obama and many liberals think that some people have "too much money". If that were true, then there would be excess money in the system, that was somehow created by these millionaires illegally or in excess of economic law. He does not think he is implying that, but he is. The money supply,. let's imagine is fixed. If you distribute it "equitably" to the poh and the government programs it gets wasted in pork barrels and overtaxed, as the poor pay a disproportionate amount of taxes. Not because of some graduate calculation but because they are poor and cannot afford even proportionate taxes. They can't even afford their own life, let alone the rich government's. Then Obama said that he was right. The poor bear the tax load. But instead of reducing their taxes he played some trickery on the stupid. He raised "others'" taxes which cannot possibly compensate for the poor's excess tax load. It does not get automatically handed to them, does it?
The idea that you can take efficiently got and applied money, from the wealthy, and somehow apply it more efficiently to needs of the many is not just laughable, it is criminally stupid. The needs of the many are better jobs. The so called rich cannot apply it to what is needed, i.e. more industry and more jobs, not to inefficient lard ass government.
There are no excess money in this society. It's accumulation to companies like Microsoft is illusory. The scant billions that companies such as MS get is a drop in the bucket. Concentrations do not argue an excess overall. The national debt of the US is the biggest business failure in all of history. We are talking untold trillions. well, 15 trillion. The debt has increased more than 500 times since 1933. Has your salary increased over your grandfathers' by 500 times? My grandfather made 750K a year back then. He left 10 million to his children in the mid 50's. No way I make $35 million a year. How about you? I will be there is nobody here who makes 500 times what his grandfather did.
I have argued that debt made by government contributes directly to inflation, as that is why they release the money supply and loosen credit, so they can get more money to operate. The inflation of the US dollar and the US debt is 100% in lock step.
EC<:-} |
